The Commission authorises a French aid
scheme to promote inland waterway transport

The Commission today agreed to a French aid scheme for inland waterway
transport. This scheme will be in force during the period 2004-2007 with a
budget of between €14.5 and €15 million per annum. The aim of this
new scheme is to encourage the development of inland waterway transport in
France through fleet modernisation and by promoting the occupation of inland
waterway carrier. Any inland waterway freight carrier operating in France is
potentially eligible for this aid.

The scheme takes over the inland waterway transport aid plan for the period
2001-2003.[1] The new scheme
also proposes new aid designed to take better account of current market
conditions.

The aid plan is in two main parts. The first part is aimed at modernising the
fleet and improving its capacity for carrying specific goods in order to meet
the needs of shipping agents and industry while improving its environmental
quality. Improving the general technical features of vessels should make it
possible to save energy and reduce pollution. The aid will also cover targeted
research and development projects to meet an explicit demand and investment in
new information and communication technologies.

The second part concerns the promotion and renewal of the occupation of
inland waterway carrier through aid for continuous training and aid for the
transfer of French vessels to young buyers.

It is proposed that when freight vessels are sold to buyers under 35 years of
age, new entrants, or wage-earners setting up their own businesses, aid not
exceeding €43/DWT[2]
should be paid if the selling price does not exceed €152/DWT. The aid will
also be capped at 30% of the total price and at €46 000.

The Commission took the view that this aid is compatible with the competition
rules.[3]

[3] On the basis of Article
87(3)(c), the Community guidelines on State aid for environmental protection,
the Community guidelines on State aid for research and development and
Commission Regulation (EC) No 68/2001 of 12 January 2001 on the application of
Articles 87 and 88 of the EC Treaty to training aid.